Dual-listed paper and packaging group Mondi will acquire 95% of the outstanding share capital in flexible packaging company KSP and related interests.
KSP produced spouted and retort stand-up pouches for the food, pet food and beverage industries, with its main manufacturing site near Seoul, South Korea. It also held an interest in a production plant near Bangkok, Thailand.
The manufacturer exported two-thirds of its production, mainly to the US, Europe and other Asian countries. For the year ended December 2014, it generated revenue of $50-million.
Mondi already owned stand-up pouch operations in Korneuburg, Austria, and Jackson, in the US, and believed the acquisition would enable it to better serve its customers in the US and Asia.
“This acquisition further supports Mondi’s strategy to develop in high value-added, high-growth markets in our consumer packaging business,” CEO David Hathorn said.
The transaction remained subject to competition clearance and other customary closing conditions and is expected to complete during the fourth quarter.